{"id":9075,"date":"2021-11-22T16:41:25","date_gmt":"2021-11-22T16:41:25","guid":{"rendered":"http:\/\/TheNextWeb=1373792"},"modified":"2021-11-22T16:41:25","modified_gmt":"2021-11-22T16:41:25","slug":"crypto-bonds-volcanoes-what-we-know-about-the-first-bitcoin-city","status":"publish","type":"post","link":"https:\/\/www.londonchiropracter.com\/?p=9075","title":{"rendered":"Crypto bonds! Volcanoes! What we know about the first \u2018Bitcoin City\u2019"},"content":{"rendered":"\n
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Crypto bros could soon have a new dream destination. At a conference on Saturday, the president of El Salvador unveiled plans to build the world\u2019s first \u201cBitcoin City.\u201d<\/p>\n

Dressed in all white and donning a backward baseball cap, President Nayib Bukele looked more like a pop star than a<\/span> politician as he described an ecological metropolis funded by Bitcoin-backed bonds.<\/span><\/p>\n

He compared his strategy to that of Alexander the Great founding cities that he humbly named after himself:<\/span><\/p>\n

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The idea behind it was that these Alexandrias be the beacons of hope for the rest of the world; that all of the world could be like that\u2026 so I thought, if you want Bitcoin to spread all over the world, we should build some Alexandrias.<\/p>\n<\/blockquote>\n

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The future. https:\/\/t.co\/fFCWjcjFqm<\/a><\/p>\n

\u2014 Nayib Bukele \ud83c\uddf8\ud83c\uddfb (@nayibbukele) November 22, 2021<\/a><\/p>\n<\/blockquote>\n

Bukele, who once \u201cjokingly\u201d described himself<\/a> as \u201cthe coolest dictator in the world,\u201d shared some key details on how he hoped to build his Alexandria.<\/p>\n

Volcano power<\/h2>\n

Bukele said the city would be built near the Conchagua volcano in southeastern El Salvador. The volcano would provide geothermal power for both the city and Bitcoin mining.<\/span><\/p>\n

\u201cThis is a fully ecological city that works and is energized by a volcano,\u201d said Bukele.<\/p>\n

It wasn\u2019t the first time that Bukele has touted this approach. In October, the 40-year-old said the country had started mining Bitcoin using geothermal energy, which accounts for around 21% of El Salvador\u2019s electricity generation.<\/p>\n

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We\u2019re still testing and installing, but this is officially the first #Bitcoin<\/a> mining from the #volcanode<\/a> \ud83c\udf0b<\/p>\n

\u2014 Nayib Bukele \ud83c\uddf8\ud83c\uddfb (@nayibbukele) October 1, 2021<\/a><\/p>\n<\/blockquote>\n

Covering the costs<\/h2>\n

The city will be funded by a sales tax and an issue of $1bn in sovereign bonds backed by Bitcoin, Bukele told the raucous crowd at the beach resort of Mizata.  <\/span><\/p>\n

Half of the $1 billion in bonds will go towards building energy and mining infrastructure, while the other half will be invested in bitcoin. <\/span><\/p>\n

The bond will be managed by blockchain tech firm Blockstream<\/a> and issued on the \u201cliquid network,\u201d a Bitcoin sidechain network.<\/span><\/p>\n

Samson Mow, chief strategy officer of Blockstream, said El Salvador also aims to create a government securities law and grant a license to Bitfinex Securities, a crypto exchange, to process the bond issuance.<\/p>\n

\u201cThe coming digital securities laws in El Salvador will make it the new center of the financial world,\u201d he said.<\/span><\/p>\n

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The #BitcoinBond<\/a> is coming. The first one will be the \u201cVolcano Bond.\u201d Backed by #Bitcoin<\/a> and with a special Bitcoin Dividend. Excited to make this a reality with @nayibbukele<\/a>, @paoloardoino<\/a>, and @bitcoinlawyer<\/a>. \ud83e\udd1d\ud83c\udf0b\ud83c\uddf8\ud83c\uddfb pic.twitter.com\/08cBoZNh8Q<\/a><\/p>\n

\u2014 Samson Mow (@Excellion) November 21, 2021<\/a><\/p>\n<\/blockquote>\n

Bukele promised that would be no income, capital gains, property, payroll, and municipal taxes.<\/p>\n

The only tax collected will be a 10% value-added tax. Half of this will be used to pay for the bonds, and the rest will be invested in municipal works.<\/p>\n

Bukele also said the city would have zero carbon dioxide emissions.<\/p>\n

City planning<\/h2>\n
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Bukele said the city will have the circular shape of a coin and be constructed in the Gulf of Fonseca:<\/p>\n

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It\u2019s gonna include everything: residential areas, commercial areas, services, museums, entertainment bars, restaurants, airport, port, rail \u2014 everything.<\/p>\n<\/blockquote>\n<\/div>\n<\/div>\n

He said construction of the city will begin 60 days after the bond offering, which will take place in 2022.<\/span><\/p>\n

The announcement forms part of Bukele\u2019s plans to create a global crypto hub.<\/p>\n

\n
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In September, El Salvador became the first country to adopt Bitcoin as legal tender<\/a>. The government also launched a digital wallet app loaded with $30 for every Salvadoran citizen who downloaded it.<\/p>\n<\/div>\n<\/div>\n

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Bukele says his strategy will boost the economy and job market, but critics have raised concerns<\/a> about bitcoin\u2019s volatility and potential for money laundering. Bukele has also been accused<\/a> of pushing his country in an authoritarian direction.<\/div>\n<\/div>\n

Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Crypto bros could soon have a new dream destination. At a conference on Saturday, the president of El Salvador unveiled plans to build the world\u2019s first \u201cBitcoin City.\u201d Dressed in all white…<\/p>\n","protected":false},"author":1,"featured_media":9076,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/posts\/9075"}],"collection":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9075"}],"version-history":[{"count":0,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/posts\/9075\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/media\/9076"}],"wp:attachment":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9075"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9075"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9075"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}